The federal government has increased the prices of kerosene oil and light diesel oil (LDO) while keeping petrol and high-speed diesel prices unchanged for the current review period.
According to the Ministry of Energy’s Petroleum Division, the price of kerosene oil has been raised by Rs39.20 per litre, bringing the new rate to Rs358.01 per litre.
Meanwhile, the price of light diesel oil (LDO) has increased by Rs67.51 per litre, setting the new price at Rs302.52 per litre, compared with the previous rate of Rs235.01 per litre.
Petrol and Diesel Prices Remain Unchanged
Despite the increase in kerosene and LDO prices, the government has decided to keep petrol and high-speed diesel (HSD) prices unchanged for consumers.
Officials said this decision was made to limit the immediate impact of rising global oil prices on the public.
The petroleum levy has also remained unchanged, with Rs105.37 per litre on petrol and Rs55.24 per litre on diesel continuing under the current pricing structure.
Rs23 Billion Subsidy to Stabilise Fuel Prices
To maintain stable petrol and diesel prices, the government will provide a Rs23 billion subsidy for one week from March 14 to March 20.
Under this arrangement:
- Petrol is being subsidised by Rs 49.63 per litre
- High-speed diesel is being subsidised by Rs 75.05 per litre
The subsidy will be paid to oil marketing companies through price differential claims, compensating them for the gap between international market prices and the government-set retail prices.
OGRA to Manage Subsidy Payments
The subsidy payments will be processed through the Oil and Gas Regulatory Authority, which will verify invoices submitted by oil marketing companies before clearing payments.
To finance the subsidy, the government has created a Prime Minister’s Austerity Fund, with Rs27.1 billion allocated for energy-related financial support measures.
Officials say the move aims to cushion consumers from rising global energy prices while ensuring that petroleum supply chains continue functioning smoothly.